With 12 luxury brands, The Red Sea leads the way in promoting sustainable tourism

The developments of the Red Sea Project will be powered by renewable energy. The company seeks to provide ultra-luxury facilities without disturbing the surrounding nature or the ecosystem of the area. (Photo/Supplied)
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Updated 07 June 2022
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With 12 luxury brands, The Red Sea leads the way in promoting sustainable tourism

  • The company believes in safeguarding, developing landscape and shores of the Red Sea

RIYADH: The traditional concept of tourism is now radically changing as many countries are gradually and earnestly promoting and investing in sustainable travel.

But what is sustainable tourism, and why is there such a big hype among countries eager to attract tourists to their natural and untouched habitats?

According to the UN Environment Program and UN World Tourism Organization, sustainable tourism is defined as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.”

To underline the importance of sustainable tourism, the UNWTO is holding its 116th session in Jeddah from June 7-8. The main theme naturally is sustainable tourism. 

Proudly sharing TRSDC experience 

The host country Saudi Arabia will surely highlight its achievement in enhancing and promoting sustainable tourism with special emphasis on the Kingdom’s pride — The Red Sea Development Co.

TRSDC plans to open three hotels this year and add 13 more by the end of 2023. The ambitious projects aim to create 120,000 jobs and add SR30 billion to the Kingdom’s gross domestic product, according to the company. Brands already on board include St Regis, Six Senses and more ultra-luxury hotel concepts focusing on sustainability.

The company has achieved an overall score of 91 out of 100 in last year’s environmental, social, and governance assessment by the Global Real Estate Sustainability Benchmark, beating the score of 84 it accomplished in its first-ever assessment in 2020.

In November 2021, the company was given the ESG Initiative of the Year award at The Chartered Governance Institute UK & Ireland’s 2021 Awards.

This followed TRSDC’s launch of its Good Governance Toolkit to guide other organizations in Saudi Arabia on best governance practices.

The company’s top executives realize that safeguarding and developing the landscape and shores of Saudi Arabia’s Red Sea is essential to attract tourists who appreciate the earth’s hidden natural treasure.

Not surprisingly, all hotels and sea resorts, both inland and on the islands, must comply with the strict environmental rules and conditions set by TRSDC. 




John Pagano, CEO of TRSDC

“Sustainability will set us apart… The Red Sea concept is all about building and working with nature,” said John Pagano, CEO of TRSDC, in an interview with Arab News. “Coral reef systems are there. For us, the goal is how to deliver what we need without impacting the environment. My visitors will get to truly immerse themselves in nature.”

AMAALA, under TRSDC’s directive, will also open eco-friendly resorts with an added focus on wellness. The project’s first phase, which includes nine resorts, aims to be complete by the end of 2024. 




Ahmad Ghazi Darwish, chief administrative officer at TRSDC, AMAALA

It is a total focus on protecting the environment, Ahmad Ghazi Darwish, the chief administrative officer at TRSDC and AMAALA, commented.

TRSDC’s drive to meet sustainable tourism criteria  

In its efforts to achieve environmental excellence, TRSDC developed an Environmental Management System, producing an EMS Manual in January 2021. The EMS was rolled out companywide by midyear 2021, supporting the company’s bid for The Red Sea Project to achieve ISO14001:2015 certification.

“TRSDC’s EMS is aimed at guiding and managing TRSDC’s activities with respect to the environment throughout the design, construction, and operational stages. The implementation of the EMS allows TRSDC to identify areas in need of improvement and actively work toward bettering them,” according to the company.

In 2021, the organization became one of the first companies in the Middle East to achieve the ISO 9001:2015 certification for quality management for the design and construction of assets.

TRSDC has also signed a memorandum of understanding with social investment company Ethmar and private foundation Ghoroos that will support TRSP’s social development objectives in numerous ways, including studying and implementing agricultural development opportunities in the project area and helping to strengthen community service and volunteer work initiative.

TRSDC partners with Red Sea Farms 

The company has also partnered with Red Sea Farms, a Saudi Arabian ag-tech business, to develop a sustainable food supply for The Red Sea’s flagship destination using sunlight and saltwater.

Red Sea Farms will build and operate the indoor farm, growing crops to sustainably feed guests and residents at The Red Sea Project. It will become the main supplier to the luxury destination’s resorts and restaurants.

The innovative technology uses sunlight and saltwater to cool greenhouses and grows crops instead of relying on rainfall, fresh groundwater, or desalinated water. This saves up to 300 liters of fresh water per kilogram of produce — a 95 percent saving compared with other ag-tech systems. In addition, the technology has been designed and developed in the Kingdom for use in often challenging environmental conditions.

“This means a reduced impact on the environment and a significant cost saving for growers. It also results in more nutritious crops while also providing a richer taste, flavor and texture,” according to TRSDC.

Partnering with Blue Planet Ecosystem

The company’s endeavor to protect the Kingdom’s ecology was also climaxed by another MoU with Blue Planet Ecosystems in October 2021.

“The Land-based Automated Recirculating Aquaculture system works by replicating natural aquatic ecosystems in a modular and automated system. LARA converts carbon dioxide directly into chemical-free seafood using phyto and zooplankton as transitional stages. It is constructed of a tower of three horizontal units. The top unit uses the sun’s energy to grow microalgae which powers the entire system. The microalgae are then moved to the next unit, where it nourishes zooplankton. The zooplankton is then transported to the bottom unit, where it’s eaten by fish,” TRSDC explained.

It added that the project’s first phase would be implemented as a 3.500m2 pilot to assess whether conditions at TRSP are suitable for the solution to work effectively and efficiently. This will be the first LARA pilot in the Middle East to undergo a commercial trial.

Investing in renewable energy

Last year, TRSDC made great strides in its mission to build the world’s largest tourism spot powered by renewable energy on Saudi Arabia’s west coast.

In December 2021, a Saudi ACWA Power-led consortium secured $1.33 billion of financing to operate the renewable power-based multi-utilities infrastructure that will serve the site.

The multibillion-dollar project, based between Umluj and Al Wajh, covers 28,000 sq. km — an area the size of Belgium — which includes over 90 untouched islands, miles of desert dunes and mountain landscapes.


Saudi IPOs attract record $176bn in investor orders: Bloomberg 

Updated 5 sec ago
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Saudi IPOs attract record $176bn in investor orders: Bloomberg 

RIYADH: Saudi companies have garnered SR659 billion ($176 billion) in orders for their initial public offerings, with investors eager to capitalize on the returns processed over the past two years. 

According to Bloomberg, this surge in demand for IPOs has surpassed the record set by Saudi Aramco in 2019 and is affecting the broader market.  

The Tadawul All Share Index, which tracks the Kingdom’s stock market, has fallen nearly 8 percent from its peak in March, lagging behind other emerging markets. This dip is partly due to investors holding onto cash for these new offerings, Bloomberg reported. 

Marwan Haddad, lead portfolio manager for Middle East and North Africa equities at Azimut, noted: “There is a notable surge in demand and a rush to the market.” 

Saudi Arabia is poised to lead the IPOs in the Middle East and North Africa region in 2024, with 27 companies aiming to list on the Kingdom’s main market, according to an analysis by Dubai International Financial Center. 

A report by DIFC, in association with the London Stock Exchange Group, said that the IPO pipeline in the MENA region seems promising this year, as several companies postponed their listings from 2023 to early and mid-2024 in anticipation of more favorable market conditions.   

“Deals will be driven mainly by Saudi Arabia, where 27 companies have expressed intent to list on the Saudi Exchange (Tadawul), in addition to expected follow-on issuances from Aramco and Savola,” said DIFC.  

Bloomberg noted that among the recent IPOs, Dr. Soliman Abdul Kader Fakeeh Hospital Co. attracted SR341 billion in orders for its SR2.86 billion IPO. Saudi Manpower Solutions Co. saw orders worth SR115 billion, 128 times more than the shares available to fund managers.  

Moreover, Rasan Information Technology Co., a pioneering fintech firm in Riyadh, received SR108.6 billion for its SR841 million IPO. Meanwhile, water treatment company Miahona drew SR94.4 billion in orders, 170 times its offering size. 

“The high demand can be attributed to several factors: an influx of hedge fund managers, substantial appetite from retail investors facilitated by up to 10 times leverage from banks, and the ease of subscribing through digital channels,” Haddad said. 

He added that the demand appears inflated as investors adapt to smaller allocations. The oversubscription levels have caused frustration among international and local investors due to reduced allocations. The strong performance of these IPOs also fuels the requests. 

Data from Bloomberg shows that of the 61 companies that went public in the last two years, 17 hit the maximum allowed 30 percent increase on their first trading day.  

Over half of these companies ended their debuts above the offer price, with an average return of 32 percent. By contrast, European IPOs raising at least $100 million have averaged a 5.2 percent return over the same period. 

Faisal Hasan, chief investment officer at Al Mal Capital, said: “The good returns given by the IPOs in the recent past have attracted both retail and institutional investors, leading to the demand.” 

He explained that investors tend to place larger orders, knowing their final allocations will be smaller due to the high request level. 

The Kingdom’s initiative to diversify its stock exchange is another contributing factor.  

“Demand for new listings is strong in Saudi because every other IPO is adding a new sector to a market hitherto dominated by banks and chemical companies,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital.  

“Rasan, for example, adds the fintech and ‘insurtech’ flavors to the market,” he added. 

The Capital Markets Authority revised book-building regulations in late 2022 to ensure order books reflected genuine demand and were not inflated by leverage. While this initially reduced oversubscription levels, the effect is diminishing. 

Previously, IPOs such as ACWA Power Co. and solutions by stc received immense demand, with orders reaching $300 billion and $126 billion, respectively.  

This contrasts with Saudi Aramco’s record $29.4 billion IPO in 2019, which drew $106 billion in orders. The recent figures highlight the sustained and growing interest in Saudi IPOs. 


South Korea, UAE sign deal to slash import duties at leaders’ summit 

Updated 29 May 2024
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South Korea, UAE sign deal to slash import duties at leaders’ summit 

SEOUL: South Korea and the UAE signed a trade pact on Wednesday to sharply cut import duties at a summit of their leaders that pledged closer business and investment ties. 

Host South Korea welcomed the UAE’s President Sheikh Mohammed bin Zayed Al-Nahyan with a traditional honour guard and a flypast of air force jets. 

“The special bond between the two leaders serves as an opportunity to deepen and advance the two countries’ special strategic partnership,” the office of President Yoon Suk Yeol said in a statement. 

The summit, which follows Yoon’s state visit last year to Abu Dhabi, focused on energy and defense, as South Korea seeks to tap the investment potential of the energy-rich Gulf state. 

In its statement, Yoon’s office said the UAE reaffirmed last year’s pledge of $30 billion in investment for South Korean businesses, in areas from nuclear power and defense to hydrogen and solar energy. 

The two sides also signed an agreement to boost investment flows into future-focused sectors in South Korea’s economy, it added. 

The Abu Dhabi National Oil Co. signed a letter of intent for a South Korean company to build at least six LNG carriers valued at about $1.5 billion, it said. 

The industry ministers formally signed a Comprehensive Economic Partnership Agreement agreed in October that will remove all tariffs on South Korean arms exports when it is ratified, South Korea said. 

The UAE will also drop import duty on automobiles over the next decade, during which South Korea’s tariffs on crude oil imports are to be removed. 

The deal will eventually scrap tariffs on more than 90 percent of the imports of both. 

On Tuesday, Sheikh Mohammed met the leaders of some of South Korea’s top conglomerates including Jay Y. Lee of Samsung Electronics, SK Group Chairman Chey Tae-won and Kim Dong-kwan of Hanwha Group, which has emerged as a major defense contractor. 

No new arms deal was unveiled, but Yoon’s office said both aim to boost long-term cooperation of their defense industries. 

South Korea has signed a series of global defense equipment contracts as part of its plans to become the world’s fourth-largest defense exporter by 2027. 

One such recent deal involves Poland, which seeks to bolster its defense as a close neighbor of Ukraine, which is at war with Russia. 


Saudi, Dutch officials hold talks on logistics at Port of Rotterdam

Updated 29 May 2024
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Saudi, Dutch officials hold talks on logistics at Port of Rotterdam

  • Discussions touched on encouraging Dutch infrastructure investments for metal processing in the Kingdom

RIYADH: The Kingdom’s Industry and Mineral Resources Minister Bandar Ibrahim AlKhorayef has held talks with officials at the Dutch Port of Rotterdam on ways to enhance cooperation in logistics, the Saudi Press Agency reported on Wednesday.

They discussed the role of the Kingdom, as a supplier of vital minerals, in the global supply chain, and investment cooperation with Dutch companies in metal processing and recycling.

AlKhorayef reviewed the objectives of the National Industrial Development and Logistics Program, under Saudi Vision 2030, which focuses on developing this sector of the Kingdom’s economy.

The minister also toured the port’s FutureLand area where he was briefed on the services provided to shipping companies which includes towing, docking, repairs, building and supply.


Saudi Arabia and Austria sign MoU for economic cooperation

Updated 29 May 2024
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Saudi Arabia and Austria sign MoU for economic cooperation

VIENNA: Saudi Arabia’s economy ministry and its Austrian counterpart signed a memorandum of understanding to boost economic cooperation between the two nations.
The Saudi Ministry of Economy and Planning Austria’s Ministry of Labor and Economy in the deal on the sidelines of the Saudi-Austrian Joint Committee held in the Austrian capital.
 The MoU was signed by the Saudi Minister of Economy and Planning Faisal bin Fadel Al-Ibrahim, and the Austrian Minister of Labor and Economy, Martin Kocher.
 The MoU aims to diversify and strengthen economic ties, exchange experiences and information, and encourage cooperation in a number of fields, including trade, industry, research and development, tourism, small and medium enterprises.
Among the content of the MoU is the organization of conferences, seminars and the exchange of visits between experts, in addition to cooperation between government institutions and the private sector.
The parties are also committed to protecting intellectual property rights and exchanging information for the purposes specified in the MoU.
This MoU comes within the framework of a cooperation agreement in the economic, commercial, industrial and technical fields signed between the two governments in 2004.


Xi calls for more jobs for youth, migrant workers

Updated 29 May 2024
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Xi calls for more jobs for youth, migrant workers

  • (We should) insist that employment of young people including college graduates is a top priority: Chinese president

BEIJING: China’s President Xi Jinping called on Monday for efforts to promote high-quality and sufficient jobs for college graduates and migrant workers, while presiding over a Politburo group study session, state media Xinhua reported on Tuesday.

“(We should) insist that employment of young people including college graduates is a top priority,” the Xinhua report quoted Xi as saying at a group study session of the Politburo, a top decision-making body of the ruling Communist Party.

The Xinhua report did not give details on job promotion support measures or plans.

The survey-based jobless rate for 16-24 year-olds, excluding college students, was 14.7 percent in April, down from 15.3 percent in March, official data showed last week.

China’s statistics bureau revised its methodology by removing college students from the survey pool after youth jobless rate surged to around 20 percent last year.

Xi also said the government should take steps to promote the employment of migrant workers, guide them to return to their hometowns and for people to start businesses in the countryside.

He called for stabilizing the income of people who had been lifted out of poverty and preventing large-scale return to poverty due to unemployment, Xinhua said.

Companies and industries with strong job creation capabilities will be supported, the report said.

China created 4.36 million new urban jobs in the first four months, Human Resources Ministry data showed, 36 percent of its annual job creation target.